1) Describe the use of the Factory Payroll account in a job order cost accounting
system.
2) Helix Co. entered into the following transactions involving short-term notes payable.
On May 14, Helix purchased $40,000 merchandise from Advent Co., terms are 2/15,
n/30. Helix uses the perpetual inventory system.
On May 29, Helix replaced the May 14 account payable with a 60-day, $30,000 note
bearing 8% annual along with paying $10,000 in cash. ________ Paid the amount due
on the note at maturity.
1> Determine the maturity date for the note.
2> Prepare journal entries for all the preceding transactions and events.
3) Discuss the importance of periodic reporting and the time period assumption.
4) A company made the following merchandise purchases and sales during the month of
May:
There was no beginning inventory. If the company uses the weighted average inventory
valuation method and the perpetual inventory system, what would be the cost of its
ending inventory?
5) _______________ is the process of transferring journal entry information to the
ledger.
6) A company is creating a fund today by depositing $65,763. The fund will grow to
$90,000 after 8 years. What annual interest rate is the company earning on the fund?
7) During November, Heim Company allocated overhead to products at the rate of
$26.00 per direct labor hour. This figure was based on 80% of capacity or 1,600 direct
labor hours. However, Heim Company operated at only 70% of capacity, or 1,400 direct
labor hours. Budgeted overhead at 70% of capacity is $38,900, and overhead actually
incurred was $38,000. What is the company’s volume variance for November? (Indicate
whether the variance is favorable or unfavorable)
8) When the completed goods are sold, the cost of the completed goods are transferred
to ___________________.
9) A company previously issued $2,000,000, 10% bonds, receiving a $120,000
premium. On the current year’s interest date, after the bond interest was paid and after
40% of the total premium had been amortized, the company purchased the entire bond
issue on the open market at 98 and retired it. Prepare the journal entry to record the
retirement of these bonds.